Key facts
- Household loans at five major South Korean banks increased by 4.137 trillion won in June.
- This is the largest monthly increase in 11 months.
- Borrowing was driven by stock investments and home purchases.
- Unsecured credit loans rose by 2.16 trillion won.
- Mortgage loans reached a record 615.15 trillion won.
Household loans at major South Korean banks saw their sharpest increase in 11 months in June, driven by increased borrowing for stock investments and home purchases. Outstanding loans at five key lenders—KB Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank, and NH Nonghyup Bank—rose by 4.137 trillion won to 774.96 trillion won ($497.4 billion) in June.
The surge in borrowing was largely fueled by unsecured credit loans, which increased by 2.16 trillion won as investors sought funds amid a rally in the stock market. Additionally, rising home prices and increased property transactions contributed to a higher demand for mortgages. Outstanding mortgage loans at these banks reached a record 615.15 trillion won by the end of June, up 1.76 trillion won from the previous month.